What is Power of Principal Commissioner or Commissioner
to grant immunity from prosecution? What is Offences by
companies?
Section
278AB and 278B of Income Tax Act 1961

Power of Principal Commissioner or Commissioner to grant
immunity from prosecution and Offences by companies are defined under section
278AB and 278B of Income Tax Act 1961. Provisions under these Sections
are:

Section 278AB of Income Tax Act "Power of
Principal Commissioner or Commissioner to grant immunity
from prosecution"

Section 278AB. (1) A person may make an application to
the 11[Principal Commissioner or] Commissioner for granting
immunity from prosecution, if he has made an application for
settlement under section 245C and the proceedings for
settlement have abated under section 245HA.

(2) The application to the 12[Principal Commissioner or]
Commissioner under sub-section (1) shall not be made after
institution of the prosecution proceedings after abatement.

(3) The [Principal Commissioner or] Commissioner may,
subject to such conditions as he may think fit to impose,
grant to the person immunity from prosecution for any
offence under this Act, if he is satisfied that the person
has, after the abatement, co-operated with the income-tax
authority in the proceedings before him and has made a full
and true disclosure of his income and the manner in which
such income has been derived :

Provided that where the application for settlement under
section 245C had been made before the 1st day of June, 2007,
the [Principal Commissioner or] Commissioner may grant
immunity from prosecution for any offence under this Act or
under the Indian Penal Code (45 of 1860) or under any other
Central Act for the time being in force.

(4) The immunity granted to a person under sub-section (3)
shall stand withdrawn, if such person fails to comply with
any condition subject to which the immunity was granted and
thereupon the provisions of this Act shall apply as if such
immunity had not been granted.

(5) The immunity granted to a person under sub-section (3)
may, at any time, be withdrawn by the 12[Principal
Commissioner or] Commissioner, if he is satisfied that such
person had, in the course of any proceedings, after
abatement, concealed any particulars material to the
assessment from the income-tax authority or had given false
evidence, and thereupon such person may be tried for the
offence with respect to which the immunity was granted or
for any other offence of which he appears to have been
guilty in connection with the proceedings.

Section 278B of Income Tax Act "Offences by
companies"

Section 278B. (1) Where an offence under this Act has been
committed by a company, every person who, at the time the
offence was committed, was in charge of, and was responsible
to, the company for the conduct of the business of the
company as well as the company shall be deemed to be guilty
of the offence and shall be liable to be proceeded against
and punished accordingly:

Provided that nothing contained in this sub-section shall
render any such person liable to any punishment if he proves
that the offence was committed without his knowledge or that
he had exercised all due diligence to prevent the commission
of such offence.

(2) Notwithstanding anything contained in sub-section (1),
where an offence under this Act has been committed by a
company and it is proved that the offence has been committed
with the consent or connivance of, or is attributable to any
neglect on the part of, any director, manager, secretary or
other officer of the company, such director, manager,
secretary or other officer shall also be deemed to be guilty
of that offence and shall be liable to be proceeded against
and punished accordingly.

(3) Where an offence under this Act has been committed by a
person, being a company, and the punishment for such offence
is imprisonment and fine, then, without prejudice to the
provisions contained in sub-section (1) or sub-section (2),
such company shall be punished with fine and every person,
referred to in sub-section (1), or the director, manager,
secretary or other officer of the company referred to in
sub-section (2), shall be liable to be proceeded against and
punished in accordance with the provisions of this Act.
Explanation.-For the purposes of this section,-

(a) "company" means a body corporate, and includes-
(i) a firm; and
(ii) an association of persons or a body of individuals
whether incorporated or not; and
(b) "director", in relation to-
(i) a firm, means a partner in the firm;
(ii) any association of persons or a body of individuals,
means any member controlling the affairs thereof.